Sep 21, · Swing Trading ‘A Good Approach’ When polled by Bitcoin Market Journal, several market analysts spoke in favor of using swing trading for bitcoin. “I think swing trading is a good approach for [bitcoin] trading,” said Petar Zivkovski, COO . Swing trading cryptocurrency is where you trade your altcoins by holding positions longer than a single day. That is the main difference between it and day trading, where you close your position before the day is over.. In this post, we will start by looking at how you can swing trade cryptocurrency successfully. Bitcoin - Reddit for a while on And because I only engaged in Crypto. a rising market - open Bitcoin discussion about in HitBTC and Binance GDAX. it's kind of that risk up with swing trading in was created to foster. swing trade today - Reddit Do. fun, but I've heard today: CryptoCurrency - buy Crypto investing the cryptotrading.
Swing trading bitcoin redditBitcoin Swing Trading - Quantitative Analysis and Trading
After you are in position you would place a stop on the previous low to exit the long position in case the market reverses. Swing trading is one of the most basic trend following trading techniques.
It has got the advantage that it is mostly based on chart patterns which can be detected without a great lag. Thus it avoids a lot of the problems that indicator based strategies face due to the lagging of indicators. Swing points are the local highs and lows of the market. Have a look at the chart below and you will see how useful this simple definition can be.
I did not mark all swing points — can you find the missing ones? Swing High: a high with a lower high on the left and right, Swing Low: a low with a higher low on the left and right. If the daily swing points show too much noise, just switch to a higher time frame and apply the same technique on weekly or monthly charts. You could also stay on the daily chart and build second order swing points. Then a 2nd order swing high would be defined as a swing high which is surrounded by lower swing highs.
Remember, it is a trend following trading technique, and so some kind of trend definition is needed. Otherwise you are buying high and selling low in a sideway market — and this would kill you within a few trades. One way to tackle this problem would be to observe the position of the swing points against each other.
Remember Dow theory: an uptrend is defined by rising highs and rising lows. So you could define the buy signal as follows: buy, if the market trades above the last swing high AND the last swing low is above the swing low before.
Another way to solve the problem would be to use some kind of trend filter. For the strategy shown in and over here I use two moving averages.
Therefore I calculate 2 moving averages which will later be used for detecting the trend. In I used a 54 and a 21 day average:. The trend detection and the entry signal long is quite straight forward and consists of three conditions:.
If all three conditions are true the strategy buys as soon as the previous swing high is touched or broken. To exit the position just have a look at the first picture in this article: Exit Long sell to close if the bitcoin market falls below its previous swing low. To reduce the risk of an open position even further, I raise the exit stop to the entry level 5 days after entry.
This gets you out early in dull markets, without sacrificing too much of the upside potential. The shown numbers are for a The analysis has been done using the tradesignal software suite. Data used: bitstamp. Hi Philipp, intriguing strategy. You are the genius who manages your money, take this simple idea and build your own strategies.
Expert traders always include the Stop-Loss strategy in their trades. The above three swing trading strategies will work consistently if you follow them anytime you have a swing trade in progress. All other swing trading cryptocurrency strategies will work at times, but not all the time.
Swing trading is easy to learn and execute, thanks to trading aids such as candlesticks, trading bots, and expert advisor software. These help you to execute more trades faster and in significant numbers that you could manage manually.
However, you need to start small and learn the ins and outs if the trade, before engaging in multiple swing trades. In the traditional stock market, it is hard to do swing trades because of the time it takes to complete a trade.
When swing trading cryptocurrency, there is no such limitations. That allows you to trade and profit from the hundreds of altcoins in various exchanges, within hours or even minutes. Swing trading in cryptocurrency requires some of the skills used to profit in the stock market. The only difference is that the periods are shorter, and in most cases, the brokers execute the trades immediately.
If you are disciplined, patient, and have some funds you can afford to lose, then the cryptocurrency market is right for you. You are going to make money some of the time, and lose money at other times.
Start trading with that in mind, and avoid trading on huge margins or leverage. Most beginners find out the hard way when they use more leverage than they should, and then lose everything in a twinkle of an eye. It is therefore best to limit how much funds you stake in each trade. In order to avoid financial ruin, you must use trading instruments that help swing traders to avoid huge losses. As we mentioned earlier, one such tool is the Stop-Loss trading option. You must use it in every trade to caution yourself from unforeseen events.
You have no option but to watch how the markets are moving every hour, and act instantly. If you have a full time job while swing trading, you can easily wear out yourself. You therefore need to find out if you will be able to meet your tax obligations as a swing trader.
Most tax authorities such as the IRA expect you to pay taxes from the earnings you make after each trade. For example, you may make a profit in the first trade, and then fail to remit any tax. If you make a loss in the next trade, the IRA still expects you to pay the taxes you owe from the first trade. As a trader, you should make continuous learning a part of your swing trading strategy.
Keep yourself updated with any new related to altcoins and the financial market. Leading influencers such as Trump, well-known financial analysts, and even celebrities can have a huge impact on the cryptocurrency market. You also need to find the right platform for swing trading cryptocurrency. We would recommend you go with Binance or any other platform that has established its credulity.